Investment Info:
Condo buy & hold investment.
Purchase price: $174,990
Cash invested: $46,000
Apartment / condo 1b/1b purchased across street from NAU. Purchased for daughter to live in during college. This was cheaper monthly than dorms, school fees, and meal ticket monthly. Loan would not approve for 10% down second home and last minute had to do 26% down. After 1 year daughter transferred schools. Hired property manager for 10% rent fee. Rents for $1450 plus fees etc. 1 yr lease signed with in days on market.
What made you interested in investing in this type of deal?
High demand for housing in college town. Located next to college. Low maintenance with HOA/ Condo setting. Campus living was more expensive than monthly condo fees. Long term cash flow. Rents were rising every year.
How did you find this deal and how did you negotiate it?
Daily searching on multiple platforms plus realtor MLS leads. Finally on Zillow.com, the property for weeks continued to show in searches but listed as SOLD. Contacted realtor to inquire why it continue to be listed but as SOLD. Turns out it was a glitch on listing, was available and have been for nearly a month. Was owned by a trust fund and owners needed to liquidate it. They accepted listed price in sellers market with a few dollars given to me for items needing fixed.
How did you finance this deal?
30 mortgage, second home, 26% down from personal funds. After one year, quit claimed deed over to my new LLC, hired property manager, and rents through my LLC.
How did you add value to the deal?
Value added by fresh paint and sink hardware. No other modifications needs. Rents adjusted to market from $800 per month 2021 to $1450 per month 2022.
What was the outcome?
Fantastic long term buy and hold in an high demand area.
Lessons learned? Challenges?
Keep a good size cash account standing by for incidentals. Keep paper work organized. Keep every contact person organized and labeled. Know who to contact and how for any situation. Locksmiths, HOA maintenance, Insurance agent, ...
Ask questions and explain in detail what your plans are to everyone invested from Mortgage holder, HOA community, to Insurance agent. Never assume you can do something with your property with out asking if its okay and are you covered from liability.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Michael McCormick agent, Wallick&Volk lender, April Knapp property manager. All local to Flagstaff and would recommend. I have used Wallick&Volk on a second property 4b/2.5 bath in Tucson also in 2021 that short/midterm rentals for the rooms.
